International Journal of KOREAN STUDIES. Volume XII, Number 1 Fall/Winter 2008

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2 International Journal of KOREAN STUDIES Volume XII, Number 1 Fall/Winter 2008

3 ISSN INTERNATIONAL JOURNAL OF KOREAN STUDIES Volume XII, Number 1 (Fall/Winter 2008) EDITOR-IN-CHIEF Hugo Wheegook Kim, East-West Research Institute MANAGING EDITOR Jack L. Hammersmith, West Virginia University Editorial Assistant: Donna MacIsaac EDITORS Kwang Soo Cheong, Johns Hopkins Univ. Samuel S. Kim, Columbia University Uk Heo, University of Wisconsin- Milw. Haeduck Lee, The World Bank Nam-Sung Huh, Korea National Defense Univ. Jin Young Park, American University Young Whan Kihl, Iowa State University Yoon-shik Park, George Wash. University Choong Nam Kim, East-West Center Young-Key Kim-Renaud, George Wash. U. Hong Nack Kim, West Virginia University Hang Yul Rhee, Shepherd University Ilpyong J. Kim, University of Connecticut Terence J. Roehrig, U.S. Naval War College Jinill Kim, Federal Reserve System Jai P. Ryu, Loyola College EDITORIAL ADVISORY BOARD Bruce Cumings, University of Chicago Soon Paik, U.S. Department of Labor Wonmo Dong, University of Washington Jong O. Ra, Hollins U. and Virginia Carter Eckert, Harvard University Jae Kap Ryoo, Kyonggi University Hak-joon Kim, The Dong-A Ilbo Eui-Hang Shin, University of South Carol. Han Kyo Kim, University of Cincinnati David I. Steinberg, Georgetown University Jae-Chang Kim, Korea-U.S. Security Studies Robert G. Sutter, Georgetown University Youn-Suk Kim, Kean University William J. Taylor, Jr., CSIS & Georgetown Chae-Jin Lee, Claremont-McKenna College Richard W. Wilson, Rutgers University Marcus Noland, Inst. for Intl. Economics Yong Soon Yim, Sungkyunkwan Univ. John K. C. Oh, Catholic Univ. of America Jang H. Yoo, Ehwa Women s University Edward A. Olsen, Naval Post Grad. School Young Kwan Yoon, Seoul Natl. University EDITORIAL INFORMATION Contributors should submit one copy of the paper that is pages in length, doublespaced, 12 point font with one-inch margins and endnotes accompanied by an electronic file compatible with the current version of MS Word. Unpublished original papers must provide full documentation in conformance with the standards in the current edition of the Chicago Manual of Style. Papers are to be submitted to Dr. Hugo W. Kim, Editor-in- Chief, International Journal of Korean Studies, 4641 Lee Highway, Suite 208, Centreville, VA , U.S.A. Contact: Tel (703) , Fax (703) , and at hugo33kim@verizon.net. The International Journal of Korean Studies is indexed and abstracted in the references of major social sciences, and all of its articles are accessible through the Columbia International Affairs Online by the Columbia University Press and Asia-Studies Online. The IJKS gratefully acknowledges financial support provided by Mr. Suh Dong-ho, President of The Korean Educational Foundation. ii

4 ISSN INTERNATIONAL JOURNAL OF KOREAN STUDIES Volume XII, Number 1 Fall/Winter 2008 CONTENTS The Lee Myung-Bak Government s North Korea Policy and the Prospects for Inter-Korean Relations Hong Nack Kim 1 Evolving Military Responsibilities in the U.S.-ROK Alliance Bruce Klingner 25 ROK Military Transformation and ROK-US Security and Maritime Cooperation: MD, PSI and Dokdo Island Taewoo Kim 43 Inter-Korean Strategic Relations and Security Forum in Northeast Asia Young Whan Kihl 61 MBnomics : A Review and the Road Ahead Sung-Hee Jwa 83 Inter-Korean Economic Cooperation: The Need for Reciprocity - Does Lopsided Cooperation Continue to Soothe North s Bluffing Mentality? Eui-Gak Hwang 101 The International Journal of Korean Studies is copyrighted under U.S. law International Council on Korean Studies iii

5 ISSN INTERNATIONAL JOURNAL OF KOREAN STUDIES The International Journal of Korean Studies (IJKS) is published twice a year jointly by the International Council on Korean Studies (ICKS) and the Council on Korea-U.S. Security Studies (COKUSS). Annual Subscription Rates: $35 for individual subscriptions, and $50 for institutional subscriptions. All the members of ICKS are entitled to receive the journal automatically, and all issues of IJKS are posted on the ICKS website at Contact: International Council on Korean Studies (ICKS) Lee Highway, Suite 208, Centreville, VA , U.S.A. Tel (703) , Fax (703) , at hugo33kim@verizon.net ICKS Website Home: INTERNATIONAL COUNCIL ON KOREAN STUDIES (ICKS) ICKS is a non-profit and non-partisan organization dedicated to the advancement of Korean studies and related academic and professional activities in the United States as well as abroad through conferences, publications, and other relevant activities. EXECUTIVE BOARD President: Soon Paik Vice Presidents: Jae O. Kang and Richard T. Shin Secretary General: Kwang Soo Cheong, Treasurer: Gwanhoo Lee IJKS Editor-in-Chief: Hugo Wheegook Kim BOARD OF DIRECTORS Chairman: Hong Nack Kim, Vice Chairman: Lai-Sung Kim Members: Bruce E. Bechtol, Jr., Kwang Soo Cheong, Walter Choi, Young Back Choi, Uk Heo, Soon Kyung Hong, Dong-Keun Jeong, Pilju Kim Joo, Jae O. Kang, Young Whan Kihl, Hugo Wheegook Kim, Ilpyong J. Kim, Kinney H. Kim, Se Ung Kim, Ung Soo Kim, Youn-Suk Kim, Haeduck Lee, Woong B. Lee, Soon Paik, Yoon-shik Park, Jong O. Ra, Hang Yul Rhee, Steve Y. Rhee, Terence J. Roehrig, Jai P. Ryu, Eui Hang Shin, Richard T. Shin AUDITORS: Jaewoo Lee and Seon-Young Ahn COUNCIL ON KOREA-U.S. SECURITY STUDIES (COKUSS) The Council on Korea-U.S. Security Studies was established in 1984 as a not-for-profit organization by a group of retired military officers, diplomats, and scholars from the United States and Korea. The Council aims to promote studies on political, economic, and military relations between two countries by exchanges of opinions and ideas among theorists and practitioners through conferences and publications. EXECUTIVE BOARD Chairman: Jae-Chang Kim Research Directors: Jae-Kap Ryoo and Nam-Sung Huh BOARD OF DIRECTORS Chairman: Jae-Chang Kim Members: Jong-Chun Baek, Nam-Sung Huh, Kwang-On Hyun, Il Hwa Jung, Hee-Sang Kim, Yong-Ok Park, Jae-Kap Ryoo, Yong Soon Yim AUDITORS: Taewoo Kim and Dae-Sung Song iv

6 CONTRIBUTORS Hwang, Eui-Gak was born in 1940 and earned his Ph.D. in economics from the University of Oregon in He taught at So-gang (Jesuit) University, Yeung-nam University, and Korea University in Korea. His overseas teaching and research include Muenster University (Germany), University of Chicago, University of Auckland (New Zealand), University of Pretoria (South Africa), Bookings Institution (Washington, D.C.), Shandong University (China), Nanjing University of Science and Technology (China), China University of Mining and Technology (China), and Pudan University (China). Dr. Hwang had served as the Member of Monetary Policy Committee of the Bank of Korea as well as Policy Committee Member of the Ministry of Defense and the Ministry of Unification, Korea. He also worked as editorial member of the Meil- Kyung-Jae Shinmoon and The Future Korea Journal published in Seoul. Professor Hwang is currently a professor emeritus of economics of Korea University and he has been working since September 2007 as full-time senior research professor of The International Centre for the Study of East Asian Development (ICSEAD), Kitakyushu, Japan. Dr. Hwang wrote ten books including The Korean Economies: A Comparison of North and South (Clarendon Press of Oxford University), He also wrote more than 100 academic papers and book contributions both in English and Korean, not to speak of many short newspaper, journal and magazine articles home and abroad. Jwa, Sung-Hee currently serves as President of Gyeonggi Research Institute (GRI). A graduate of Seoul National University (SNU), Dr. Jwa earned his PhD in Economics at UCLA in He then worked as an economist at the Federal Reserve Bank of Minneapolis for 2 years then joined the Korea Development Institute (KDI) in 1985, where he served as Senior (Research) Fellow until Dr. Jwa left the KDI in 1997 to serve as President of the Korea Economic Research Institute (KERI) for 8 years prior to joining the GRI in Dr. Jwa teaches regularly in SNU and KDI as Visiting Professor. He is a well-respected economist often participating in national policy debates and has written extensively, both in Korean and in English. His most recent award-winning book in Korean is the New Wealth of Nations published in 2006, which has a sequel, essentially a treatise on economic development, entitled Economic Discrimination beyond Evolution, to be published soon. Dr. Jwa s English titles include: A New Paradigm for Korea s Economic Development (2001); The Evolution of Large Corporations in Korea (2002); Competition and Corporate Governance in Korea (2004), and v

7 many others articles published in various international and domestic journals. Dr. Jwa is a member of the Presidential Council on National Competitiveness, and serves in a variety of public task forces. His areas of specialty are Development Economics, New-Institutional Economics, Korean Economy, Monetary Economics, and Industrial Organization. Contact: shjwa@gri.re.kr. Website: Kihl, Young Whan is Professor of Political Science emeritus at Iowa State University, Ames. A recent recipient of the 2005 Regents Faculty Excellence Award, from the State of Iowa, and the 2005 Global Korea Award, from Michigan State University, Kihl currently serves as Editorin-Chief to International Journal of Korean Studies and contributing editor to Korea Journal (a publication of Korean National Commission for UNESCO, Seoul). He was on editorial board of the Journal of Asian Studies, , and on editorial advisory board of International Studies Quarterly, Kihl received B.A. degree (1959), in political science and economics, from Grinnell College and both M.A. (1960) and Ph.D. (1963) degrees in politics from New York University. Kihl was a distinguished visiting professor at Yonsei University Graduate School of International Studies (1997), an exchange professor in residence at the Sejong Institute (1998), and the Fulbright Professor at Ewha Woman s University Graduate School of International Studies (1999), all of them in South Korea. He was a visiting POSCO fellow at the East-West Center, June-August 2006, working on a project of Building an East Asian Regional Order: Testing of Propositions, Kihl has written a number of books and articles on Asian security and Korean politics. Contact: Kim, Hong Nack (Ph.D., Georgetown University) is a professor of political science at West Virginia University. He was a visiting Fulbright fellow at Keio University (1979, 1982) and visiting Fulbright professor at Seoul National University during the academic year Formerly editor-in-chief of International Journal of Korean Studies, he has written widely on East Asian affairs, contributing numerous (over 130) book chapters and articles to such journals as Asian Survey, Pacific Affairs, Current History, World Politics, Asia Quarterly, Asian Affairs: An American Perspective, Asian Perspectives, Journal of Northeast Asian Studies, North Korean Review, World Affairs, Keio Journal of Politics, Korea Observer, Korea and World Affairs, Journal of East Asian Affairs and Problems of Communism. In addition, he has authored and edited seven books, including North Korea: The Politics of Regime Survival (M. E. Sharpe, 2006) (Co-editor: Young Whan Kihl). During vi

8 the fall semester 2005, he was a visiting POSCO Fellow at the East-West Center, Honolulu, Hawaii. His paper entitled The Koizumi Government and the Politics of Normalizing Japanese-North Korean Relations was published in the East-West Center Working Paper Series in Currently, he is chairman of the Board of Directors of the International Council on Korean Studies, Washington, D.C. Kim, Taewoo: Taewoo Kim received his Ph. D. in Political Science from the State Univ. of New York at Buffalo in Since then he has worked as a defense specialist with special interest in nuclear issues. Currently Dr. Kim is Vice-President in charge of the Defense Affairs Committee at the Korea Institute for Defense Analyses (KIDA), the largest defense think-tank under the arm of the Ministry of National Defense. At KIDA he has produced over 50 research papers pertaining to such security issues as N. Korean nuclear matters, nuclear strategies, ROK-U.S. alliance, U.S. forces in South Korea, WMD nonproliferation, missile defense, PSI, etc. In South Korea he is one of the most prolific writers and the author of some 1,000 writings (books, papers, newspaper columns, etc.) pertaining to nuclear and other security issues. He has taken various positions including research fellow at the Sejong Institute, policy research fellow at the National Assembly, commentator for KBS- TV, policy advisor to Korean Veterans' Association, advisor to light water reactor project for North Korea, etc. His writings written in English include: "US-DPRK Nuclear Rapprochement in the South Korean Dilemmas," Third World Quarterly (Nov. 1995); "South Korean Patience Wearing Thin," Bulletin of Atomic Scientists (Sep./Oct. 1995); "South Korea's Missile Dilemmas," Asian Survey (May/June 1999); "Islamic Terrorism and Clash of Civilizations," Korean Journal of Defense Analyses (Mar. 2002); "North Korean Nuclear Politics at the Crossroads," KJDA (Fall 2004). ktwktw@gmail.comb. Klingner, Bruce is the Senior Research Fellow for Northeast Asia at The Heritage Foundation's Asian Studies Center. Prior to joining Heritage in 2007, he spent 20 years in the intelligence community working at the CIA and Defense Intelligence Agency. He served as Chief of CIA's Korea Branch during the nuclear crisis with North Korea. He later served for five years as the deputy for CIA's analysis on Korean political, military, economic, and leadership issues for the president of the United States and other senior policymakers. His articles have appeared in The Financial Times, The Washington Times, USA Today, Chosun Ilbo, Joongang Ilbo, Korea Herald, Korea Times, Seoul Shinmun, Kukmin Daily, Far Eastern Economic Review, Nikkei Weekly, vii

9 The Asia Times, the Korea and World Affairs journal, the Korea Policy Review journal, and Yale Politic. His comments and analysis have appeared in CNN, CNN International, CNBC, Bloomberg TV, Fox News TV, C-Span TV, BBC TV, SBS (Korea) TV, KBS (Korea) TV, NHK (Japan) TV, Arirang (Japan) TV, The New York Times, International Herald Tribune, Financial Times, Fortune, Newsweek, Washington Post, Los Angeles Times, Wall Street Journal, and Christian Science Monitor. Klingner is a distinguished graduate of the National War College where he earned a master's degree in national security strategy. He also earned a master's in strategic intelligence from the Defense Intelligence College and has a bachelor's degree in political science from Middlebury College in Vermont. viii